Modern financial transactions often require the use of a credit card. For example, making a purchase online typically requires the use of a credit card. To get a credit card, a user usually fills out and submits an application to a card issuer online, by mail, or in person. The card issuer may then provide a credit card in person to the applicant or, more often, sends the credit card by mail. As part of the application process, the card issuer typically checks the credit history of the applicant. The applicant's credit history will dictate whether the applicant is eligible for a credit card and the credit limit on the credit card. When an applicant has a poor credit history, the card issuer may not approve the applicant for a card. In those situations, the applicant may instead apply for a secured credit card.
A secured bank card is a type of credit card for which the applicant provides a deposit to secure the card. The deposit account serves as security for the card issuer in the event that the applicant fails to make timely payments. Typically, the applicant is required to deposit up to 100% of the desired credit limit. However, the card issuer may lower the deposit required based on the applicant's credit history. To apply for a secured credit card, an applicant must submit an application either on line, in person, or by mail. The applicant must then provide the deposit payment before being issued the card. Often it is difficult for an applicant with poor credit history to find the time to visit a card issuer's physical location to submit an application. Furthermore, when submitting an application online the applicant is required to make a money transfer to provide the deposit payment. Many individuals applying for secured credit cards prefer to make cash payments and cannot do so online.
Currently, an applicant can get a prepaid credit card from certain retail stores. A prepaid credit card is not a true credit card, as there is no credit offered by the card issuer. An applicant therefore cannot build credit by using a prepaid credit card. Certain retail stores also offer secured credit cards that an applicant can apply for in person at the store. However, in these situations the applicant must still go to the retail store location to apply for and receive the card.
Accordingly, there remains a need for improved systems and methods for applying for and receiving a secured credit card.